New York Fed President William Dudley : U.S. economy as “pretty good.”

New York Fed President William Dudley struck a more hawkish tone, arguing against slowing the pace of interest-rate increases, and describing the U.S. economy as “pretty good.” Dudley’s remarks on Monday were cited as adding to yields extending gains following the Fed’s Wednesday announcement of its plan to shrink it balance sheet as it cut key interest rates. Amid the central bank’s moves last week, sluggish inflation has led bond buyers to reassess expectations for a rate increase by the Fed in September, with expectations shifting to an increase—if at all—when the policy makers convene in December.